Bloom and Plant Organize a Partnership on January 1

Multiple Choice

Bloom and Plant organize a partnership on January 1.Bloom's initial investment consists of $800 cash,$1,700 equipment and a $500 note payable reflecting a bank loan for the new business.Plant's initial investment is cash of $2,000.These amounts are the values agreed on by both partners.The journal entry to record Bloom's investment is:

A) Debit Cash $800;debit Equipment $1,700;credit Note Payable $500;credit Bloom,Capital $2,000.
B) Debit Cash $2,000;credit Bloom,Capital $2,000.
C) Debit Cash $800;debit Equipment $1,700;credit Bloom,Capital $2,500.
D) Debit Cash $800;debit Equipment $1,200;credit Bloom,Capital $2,000.
E) Debit Bloom,Capital $3,000;credit Common Stock $3,000.